Who Can Access a POD Account and When
A pay-on-death account is one of the most straightforward ways to pass money outside of probate. While the account holder is alive, the account works like any other bank account. Any named party can withdraw funds, regardless of whether another party is incapacitated or has already passed away.
A financial institution, on request, may pay sums on deposit in an account with a pay on death designation to: 1. One or more of the parties, whether or not another party is a party with disabilities, incapacitated or deceased when the payment is requested and whether or not a party survives another party.
A.R.S. § 14-6223(1)After every account holder has passed away, the financial institution pays the remaining balance to the named beneficiaries, provided they can show proof of death for all parties. If the beneficiaries themselves did not survive the account holders, the funds pass to the personal representative, heirs, or devisees of the last surviving party.
Why the Order of Payment Matters
The structure here protects both the bank and the family. The bank follows a clear priority: living parties first, then surviving beneficiaries, then the estate of the last party standing. This avoids confusion when multiple names appear on a single account.
The beneficiary or beneficiaries, if proof of death is presented to the financial institution showing that the beneficiary or beneficiaries survived all persons named as parties.
A.R.S. § 14-6223(2)For families relying on POD designations as part of their estate plan, this statute highlights why keeping beneficiary information current matters. If every named beneficiary predeceases the account holder, the funds may end up in probate anyway. Regular reviews with a partner attorney can help ensure designations stay aligned with the overall plan.
